Chicago Gold and Silver Investing Fan Blog

Numbers Show Gold is Not in a Bubble

The recent drastic drop in the price of gold had some calling that the gold bubble popped. However, the numbers do not indicate that.

The chart above shows that only 1% of all financial assets are in gold. Whereas in the 1970's when a real gold bubble hit, 26% of financial assets was in gold. This tells me that gold is not in a bubble. If anything, the price of gold still has a ways to go UP.

Click for more charts and analysis.

Nations Always Progress Through Following Sequence

I got this email:

Hi All.......The colleague that sent this to me remembers me referring to the famous historian Toynbee (deceased)...He said civilizations are three hundred years up and three hundred years down....I often think about this....For me, this piece is extremely interesting!  I am pretty sure all of you will appreciate it.....Prayers, best wishes,  cris

 

In 1887 Alexander Tyler, a Scottish history professor at the University of Edinburgh, had this to say about the fall of the Athenian Republic some 2,000 years prior: "A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse over loose fiscal policy, (which is) always followed by a dictatorship."

"The average age of the world's greatest civilizations from the beginning of history, has been about 200 years. During those 200 years, these nations always progressed through the following sequence:

From bondage to spiritual faith;

From spiritual faith to great courage;
From courage to liberty;
From liberty to abundance;
From abundance to complacency;
From complacency to apathy;

From apathy to dependence;
From dependence back into bondage."
The Obituary follows:

Born 1776, Died 2012
It doesn't hurt to read this several times.
Professor Joseph Olson of Hamline University School of Law in St. Paul, Minnesota, points out some interesting facts concerning the last Presidential election:

Number of States won by: Obama: 19 Romney: 29 Square miles of land won by: Obama: 580,000 Romney: 2,427,000

Population of counties won by: Obama: 127 million Romney: 143 million Murder rate per 100,000 residents in counties won by: Obama: 13.2
Romney: 2.1

Professor Olson adds: "In aggregate, the map of the territory Romney won was mostly the land owned by the taxpaying citizens of the country.

Obama territory mostly encompassed those citizens living in low income tenements and living off various forms of government welfare..."

Olson believes the United States is now somewhere between the

"complacency and apathy" phase of Professor Tyler's definition of democracy, with some forty percent of the nation's population already having reached the "governmental dependency" phase.


If Congress grants amnesty and citizenship to twenty million criminal invaders called illegals - and they vote - then we can say goodbye to the USA in fewer than five years.

If you are in favor of this, then by all means, delete this message.

If you are not, then pass this along to help everyone realize just how much is at stake, knowing that apathy is the greatest danger to our freedom..

Roman Decline Worth Studying

Plutarch on the outbreak of the Roman Civil War

The Roman Empire was known for its decline as much as its rise. The common thinking is that Rome fell due to the Barbarian invasions from the north. In other words an external enemy. Yes, that has a part to it. However, another less known part is that the decline came internally as well. Rome had infighting that eventually destroyed it.

Roman legions became loyal to their own generals instead of the state. In a 20 year period, Rome had 20 different emperors claiming to be Roman emperor. Rome was falling internally. Soldiers became loyal to the army more than the state and that led to civil wars. Roman legions were fighting each other instead of fighting barbarians or other external enemies.

The same thing could happen here in America. People think of the American civil war as the first major conflict among Americans. What may people do not realize is that the conflict amongst it's people even before that. In the Revolutionary War, when America was an England colony, Americans hd to decide whether to support the English (called Loyalists) or to support the revolution. A great number choose to be Loyalist. Even Benjamin Franklin's son William Franklin was a Loyalist.

Today, America is definitely not United. I feel the greatest division is between political ideological grounds. We have the liberals on one side and the conservatives on the other. There are battles between these two distinct ideologies every day. Gay marriage versus traditional definitions of marriage, gun control vs gun rights, abortion vs life, more regulations vs less regulation, the state vs religion, controlled markets vs free markets, restriction of speech vs freedom of speech,  high taxes vs sane taxation, and on and on.

We have a president in Obama who seems to relish in these differences and is looking to defeat the other side.

Unfortunately- or better yet realistically- history shows that this will eventually lead to internal strife and ultimately greater divisions. The Roman empire was one of the greatest in the world. The American dream still lives to this day. However, internal strife abounds and even America is not impervious.